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Important Information for
Property Owners
Public
Act 123 of 1999 shortens the amount of time property owners have to
pay their delinquent taxes before losing their property. Property
owners with taxes that are two years delinquent will be foreclosed and
the property sold at public auction. For example, people who fail
to pay their 2005 delinquent property taxes will lose their property
to Foreclosure on March 31, 2008.
With this new act, the amount of time to pay taxes has
been reduced from approximately five years to approximately two
years.
Property
owners face higher interest and fees for not paying their taxes.
Taxes that are delinquent for more than one year will
have a substantially higher interest rate ( 1.5% per month as opposed
to the current 1%). After one year, taxes will have a $175 Forfeiture
Fee and additional administrative fees added to them. On March 1st
a $45 DNR Inspection Fee and additional recording fees are added.
A $10 fee to record the Forfeiture Certificate with the Register
of Deeds and a $10 fee to record the Redemption Certificate; if
a second page is required, an additional $3 per page. On December
1st a $50 Publication/Notice Fee is also added.
Q. If I don't pay my taxes, will I really lose my house and property?
A. YES. Property owners who had delinquent taxes under the old law
could lose their property, but they had more time to pay and more
"second chances". Under the new law, if your taxes are
delinquent for three years, that's it. You've lost the property.
Q. What does it mean for my property to be in Forfeiture?
Does that mean I lose my property?
A. NO. Forfeiture is not Foreclosure. If your property
is in Forfeiture, you still have one year before it will be foreclosed.
However, the interest and fees will be higher. When a property is
forfeited, the interest rate goes from 1% per month to 1.5% per
month back to the date the taxes became delinquent. A $175 fee is
also added.
Q. What happens after my property is in Forfeiture?
A. After a property has been in Forfeiture for one year, it will be
Foreclosed. 2005 property taxes will be Foreclosed on March 31,
2008.
.
Q. What happens after my property is Foreclosed? How
do I get it back?
A. FORECLOSURE IS FINAL. YOU CANNOT GET YOUR PROPERTY BACK AFTER
IT HAS BEEN FORECLOSED. PROPERTY THAT HAS BEEN FORECLOSED WILL BE
SOLD AT PUBLIC AUCTION.
Q. Will I receive any notification before my property is Foreclosed?
A. YES. Five notifications will be made. Two will be by first class
mail, two by certified mail and the last notification will be made
by personal service. In addition to these notifications, names and
addresses of delinquent property owners may be published in the
newspaper.
PROPERTY FORECLOSURE
TIME LINE - 2005 PROPERTY TAXES
July / December
2005: 2005 property taxes are billed by city/township/village
treasurer.
March 1, 2006: Unpaid 2005 property taxes are forwarded
to the County Treasurer for collection. A 4% administration fee
and 1% per month interest is added to each parcel.
October 1, 2006: The County Treasurer adds a $15
Statutory Fee to each parcel.
March 1, 2007: Property is Forfeited to the County
Treasurer. The County Treasurer adds a $175 Forfeiture Fee and a
$45 DNR Inspection Fee. Interest increases from 1% per month to
1.5% per month, back to the date the taxes became delinquent.
December 1, 2007:
The County Treasurer adds a $50 Publication/Notice Fee.
March 1, 2008 - March 10, 2008: Circuit Court enters
a Judgment of Foreclosure. March 31, 2008: Clear
title to the property passes to the State.
September / November 2008: Property is sold at
public auction.
PROPERTY FORECLOSURE
TIME LINE - 2006 PROPERTY TAXES
July / December
2006: 2006 property taxes are billed by city/township/village
treasurer.
March 1, 2007: Unpaid 2006 property taxes are forwarded
to the County Treasurer for collection. A 4% administration fee
and 1% per month interest is added to each parcel.
October 1, 2007: The County Treasurer adds a $15
Statutory Fee to each parcel.
March 1, 2008: Property is Forfeited to the County
Treasurer. The County Treasurer adds a $175 Forfeiture Fee and a
$45 DNR Inspection Fee. Interest increases from 1% per month to
1.5% per month, back to the date the taxes became delinquent.
December 1, 2008:
The County Treasurer adds a $50 Publication/Notice Fee.
March 1, 2009 - March 10, 2009: Circuit Court enters
a Judgment of Foreclosure. March 31, 2009: Clear
title to the property passes to the State.
September / November 2009: Property is sold at
public auction.
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